REACH RESOURCES LIMITED — Capital/Financing Update 2007

Jul 2, 2007

Cervantes Seafood Limited

3 July 2007

Dear Shareholders.

Company Update

It gives me areat pleasure to advise that Cervantes Seafood Limited (ASX:CVS) has successfully met the requirements to have the Company's shares re-quoted on ASX.

If you are a new shareholder I welcome you and thank you for your recent support, and if you are an existing shareholder I thank you for your on-going commitment as we reinvigorate your Company over the coming months.

The capital raising required for re-quotation was handled by Montagu Stockbrokers Pty Ltd and was oversubscribed.

Your company is debt free, with substantial cash and assets. The board will be seeking to maximize the value and use of its current assets and assess new opportunities in an effort to enhance the value of your shareholding.

Thank you once again for your support and we hope that it is ongoing during these exciting times.

Yours Sincerely

Robert Grover Director Cervantes Seafood Limited

Cervantes Seafood Limited ACN: 097 982 235 c/- Gary Anderson Chartered Accountant, Ground Floor, 12 Prowse Street, WEST PERTH WA 6005 Telephone: +61 8 9486 7822 Facsimile: +61 8 9226 4250